press release · 2020. 9. 9. · press release. ghana statistical service cpi release august 2020...

CONSUMER PRICE INDEX AND INFLATION

9 September 2020

PRESS RELEASE

GhanaStatistical Service

CPI releaseAugust 2020

In this release, we present:

▪Definition and Measurement of Consumer Price Index (CPI) and rate of inflation

▪CPI and rate of inflation for August 2020

▪Core Inflation as a result of COVID-19 associated volatilities in prices

▪Dominant Divisions of inflation for August 2020

▪Disaggregation of August 2020 rate of inflation

▪Highlights of CPI and rate of inflation for August 2020

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▪CPI measures changes in the price of a fixed basket of goods and services purchased by households

▪The assumption is that the basket is purchased each month, hence as price changes each month, the total price of the basket will also change

▪The rate of inflation is the relative change in CPI between periods

▪Inflation is reported year-on-year (annual inflation) and month-on-month (monthly inflation), and granulated to determine regional and commodity type and source of inflation

Definition and measurement of CPI and rate of inflation (1/3)

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▪CPI does not measure price levels

▪CPI is a price perspective measure and cost-of-living index is an expenditure oriented measure

▪Data (market readings) are captured monthly

▪Key variables are prices, quantities and expenditure weights of items

▪Price reference year is 2018 (2018 = 100)


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▪Prices are collect for approximately 39,500 products every month.

▪Price collection is done in 44 markets

▪Prices are collect from 7,726 outlets.▪Products are ordered in a hierarchy of 307 Items, 156 Subclasses, 98 Classes, 44 Groups, and 13 Divisions.

▪Every Item can only be part of one Subclass, and every Subclass can only be part of one Class, etc.



▪CPI for August 2020 was 120.0relative to 120.5 in July 2020

▪Year-on-year inflation rate for August 2020 was 10.5%

▪This means that in the month of August 2020 the general price level was 10.5 % higher than in August 2019

▪Month-on-month inflation between July 2020 and August2020 was -0.4%

CPI and inflation for August 2020

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Month CPI Inflation

Monthly Yearly

Aug - 2019 108.6 - 7.8%

Sep - 2019 108.5 0.0% 7.6%

Oct - 2019 109.0 0.4% 7.7%

Nov - 2019 109.7 0.7% 8.2%

Dec - 2019 110.0 0.3% 7.9%

Jan - 2020 111.6 1.4% 7.8%

Feb – 2020 112.1 0.4% 7.8%

Mar - 2020 113.0 0.8% 7.8%

Apr-2020 116.6 3.2% 10.6%

May-2020 118.6 1.7% 11.3%

June-2020 119.8 1.0% 11.2%

July-2020 120.5 0.5% 11.4%

Aug - 2020 120.0 -0.4% 10.5%



Core Inflation as a result of COVID-19 associated volatilities in prices

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▪ Core inflation is a measure of inflation designed to minimize the effects of sudden price changes. These changes are mostly influenced by month-on-month unexpected drops and surges of prices of certain volatile goods and services. GSS does this by eliminating volatile products such as Food Items, Energy and Utility from the index calculation.

▪ In August 2020 the core inflation was 9.4%.

▪ Last month core inflation was 9.3%.



Composition of year-on-year inflation

▪Food contributed 47.9% to the year-on-year inflation in August 2020.

▪This is only slightly higher than in the months prior to COVID-19.

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CPI releaseAugust 2020 8

Composition of month-on-month inflation

▪Month-on-month inflation was -0.4%

▪This is predominately driven by negative month-on-month Food inflation (-1.1%)

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Disaggregation of August 2020 rate of inflation

▪ Food inflation was 11.4%▪ Last month this was 13.7%▪ 8 months before March this was on average 7.9%▪ Month-on-month Food inflation was -1.1%.

▪ Non-food Inflation was 9.9%▪ Last month this was 9.7%▪ 8 months before March this was on 7.8%

▪ Inflation for locally produced items was 12.6%▪ Inflation for imported items was 4.8%

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Disaggregation of year-on-year inflation by Division

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Disaggregation of YoY and MoM Food-inflation by Subclass

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Month-on-month inflation of Divisions



August 2020 regional rates of inflation

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YoY regional rates of inflation for August 2019 – August 2020

1414



Imported and local inflation August 2019 – August 2020



Food and Non-Food year-on-year inflation August 2019 – August 2020



Food and Non-Food month-on-month inflation August 2019 – August 2020



Disaggregation of inflation in Greater Accra for August 2020

Greater Accra Region Weight (%) Greater Accra Region - Food Weight (%)

Housing, Water, Electricity, Gas 3.8 39.1 Tea 0.0 22.2

Transport 4.0 13.2 Fish and Other Seafood 1.7 22.0

Recreation, Sport and Culture 0.7 11.7 Vegetables 2.5 14.1

Clothing and Footwear 1.9 10.4 Oils and Fats 0.3 10.6

Education Services 2.8 8.2 Live Animals and Meat 0.9 8.0

Food and Non-Alcoholic Beverages 11.9 8.1 Milk, Dairy Products and Eggs 0.4 7.1

Health 0.2 7.5 Ready-made Food 2.9 6.8

Alcoholic Beverages, Tobacco and Narcotics 0.5 7.3 Sugar and Sesserts 0.2 6.6

Information and Communication 1.3 7.2 Cereal Products 2.1 5.8

Personal care and Miscellaneous Goods 0.7 5.3 Soft Drinks 0.2 4.6

Household Equipment and Maintenance 0.8 4.9 Coffee and Coffee Substitutes 0.0 0.0

Fruit and Vegetable Juices 0.1 -0.8

Water 0.1 -2.7

Fruits and Nuts 0.4 -8.7

Greater Accra - Overall 13.7 Greater Accra - Food 8.1

Year-on-year inflation (%), Greater Accra Region Year-on-year Food inflation (%) Greater Accra Region

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Highlights

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1. Year-on-year (August 2019 - August 2020) inflation was 10.5%.2. Month-on-month (July 2020 - August 2020) inflation was -0.4%.3. Variation between food (11.4%) and non-food Food inflation (9.9%) was 1.5%.4. Difference between locally produced items (12.6%) and imported items (4.8%)

was 7.8%.5. Month-on-month (July 2020 - August 2020) Food inflation was -1.1%. This

drives the total negative month-on-month.6. National year-on-year inflation for August 2020 was 10.5\%. The month-on-

month inflation rate of negative 0.4% indicates that prices actually decreasedslightly in the last month. This is driven by negative month-on-month food inflation (-1.1%). Furthermore, the contribution of food items (47.9%) to total year-on-year inflation is lower than previous months and similar to the months prior to COVID-19.



End of Press Release forAugust 2020 Consumer Price Index

For enquiries, please contact:

Mr. John F.K. Agyaho(Head, Price Statistics, GSS)

[email protected]

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PRESS RELEASE

Consumer Price Index and Inflation

August 2020

press release · 2020. 9. 9. · press release. ghana statistical service cpi release august 2020...

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